08 May 2009

Business travelers take cheap seats

For the first time since American Express Business Travel began tracking its business travelers' airfare purchases in 1999, more than half were flying the cheap seats overseas.
Those flying economy on international flights soared 13 percentage points to 56 percent in the first three months this year.

The number has historically been in the low 40s, American Express said, and is rising now as companies focus on cutting costs.

Business travelers flying coach on domestic flights remained near 90 percent.
Companies' airfare costs also came down as the price of travel fell across the board in the first quarter. Domestic ticket prices dropped 9 percent through March, while international ticket prices were down 12 percent. In 2008, they rose 7 percent and 8 percent, respectively.
The average domestic ticket price was $213 in the first quarter.

People were also spending less on lodging. The average rate for hotel rooms in the U.S. fell to $180 in the first quarter from $203 last year. "A buyers' market emerged at the end of last year, and is in full force today," said Frank Schnur, a vice president at American Express' business travel division.

The survey is based on American Express' database of its business travel clients' airfare purchases and hotel rooms booked.